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Basis of Reporting and Accounting | 9 Months Ended
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Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Basis of Reporting and Accounting | BASIS OF REPORTING AND ACCOUNTING The accompanying consolidated financial statements include the accounts of The Progressive Corporation and our wholly owned insurance subsidiaries and non-insurance subsidiaries and affiliates in which we have a controlling financial interest (Progressive). The consolidated financial statements reflect all normal recurring adjustments that, in the opinion of management, were necessary for a fair statement of the results for the interim periods presented. The results of operations for the period ended September 30, 2025, are not necessarily indicative of the results expected for the full year. These consolidated financial statements and the notes thereto should be read in conjunction with Progressive’s audited financial statements and accompanying notes included in Exhibit 13 to our Annual Report on Form 10-K for the year ended December 31, 2024 (2024 Annual Report to Shareholders). Premiums Receivable We perform analyses to evaluate our premiums receivable for expected credit losses. See our 2024 Annual Report to Shareholders for a discussion on our premiums receivable allowance for credit loss policy. The following table summarizes changes in our allowance for credit loss exposure on our premiums receivable:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(millions) | 2025 | 2024 |  | 2025 | 2024
Allowance for credit losses, beginning of period | $ | 501 |  | $ | 328 |  |  | $ | 460 |  | $ | 369 |
Increase in allowance 1 | 211 |  | 167 |  |  | 540 |  | 402 |
Write-offs 2 | (196) |  | (107) |  |  | (484) |  | (383) |
Allowance for credit losses, end of period | $ | 516 |  | $ | 388 |  |  | $ | 516 |  | $ | 388 |
1 Represents the incremental increase in other underwriting expenses. 2 Represents the portion of allowance that is reversed when the premiums receivable balances are written off. Premiums receivable balances are written off once we have exhausted our collection efforts. Property – Held for Sale At September 30, 2025 and 2024, and December 31, 2024, we had held for sale properties of $112 million, $150 million, and $129 million, respectively, which are included in other assets on our consolidated balance sheets. New Accounting Standards We did not adopt any new accounting standards during the three and nine months ended September 30, 2025. In September 2025, the Financial Accounting Standards Board issued an Accounting Standards Update (ASU), which amends the existing accounting guidance for capitalization of internal-use software costs and provides more detailed guidelines around the criteria for capitalization. This ASU will be effective for fiscal years (including interim periods within those fiscal years) beginning after December 15, 2027 (2028 for calendar-year companies). This standard may be applied using a prospective, modified, or retrospective transition approach. We do not believe this ASU will have a material impact on our financial condition or results of operations.

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- Definition The entire disclosure for the basis of presentation and significant accounting policies concepts. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). Accounting policies describe all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483426/235-10-50-1 + Details
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- References No definition available. + Details
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